GST DAILY – 256

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Recovery proceedings couldn’t be initiated before expiry of 3 months from date of service of order: HC

THE HON’BLE MADRAS HIGH COURT IN THE CASE OF TVL.CARGOTEC INDIA PVT. LTD. V/s ASSISTANT COMMISSIONER (ST), CHENNAI, decided on 23-4-2024

👉 Issue:-

✔️ Is it possible to recovery proceedings could be initiated against assessee prior to expiry of three months of the order passed by the department?

👉 The Hon’ble High Court Judgement:-

✔️ Where pursuant to assessment order, amount of tax was debited from Electronic ledger of assessee before expiry of three months i.e. statutory period for filing appeal, by invoking section 78, since authority had failed to explain recourse of section 78, amount debited was to be refunded to assessee 

Section 78 of Central Goods and Services Tax Act, 2017